I3 Energy continues to march ahead with a robust strategy

Summary 

• Energy firm I3 Energy has emerged as a strong player in the oil and gas industry.
• The firm’s Martin Hills’ second well operational updates and Cenovus Energy asset acquisition highlight the continuing execution of its corporate strategy.
• The company’s upcoming general meeting to approve the recent share placing.

AIM-listed independent oil and gas company I3 Energy (LON: I3E) (TSX:ITE) has emerged as a business well-positioned for growth in the oil and gas industry.

The company recently announced the completion of its first phase of drilling at its Martin Hills Clearwater drilling programme located in Alberta, Canada.

This is the latest in a series of recent developments that have shown the company’s commitment to execute its long-term vision and ensure shareholder returns. I3 Energy aims to deliver up to 30 per cent of its free cash flow (FCF), with its next twelve months (NTM) net operating income (NOI) forecasted at about US$ 44 million, which is expected to increase to $75mm following completion of the recently announced transaction with Cenovus Energy.

Well-planned strategy

In its most recent operational update, I3 Energy announced plans to start its second phase of drilling at the Martin Hills site, following the completion of the first phase’s data evaluation.

The site is also expected to start production from late July from both its wells that were a part of its first phase of drilling at the Martin Hills site.

The energy company’s second phase of drilling operations and asset acquisition of Canada energy firm Cenovus Energy were in sync with the company’s focus on consolidating its Alberta core area through incremental drilling at existing oil plays and boosting its production portfolio base through strategic acquisitions.

(Image Source: Company Release)

Also Read: I3 Energy announces completion of drilling at second Martin Hills well

Upcoming general meeting

A company can achieve its medium- and long-term vision when major stakeholders, such as shareholders, are not only on board with its activities but also actively participate and support it for measures like fundraising.

I3 Energy recently announced in a circular that it would hold a general meeting on 26 July to obtain shareholders’ approval of its conditional share placing and primary bid offer.

I3 Energy had raised about £40 million from a total of 363.7 million placing shares, including the primary bid offer, to fund the Cenovus Energy asset worth CA$ 65 million.

The shares were placed at an issue price of 11 pence per placing share, around 3 per cent lower than the mandated fortnight average closing price of 11.4 pence.

London-based fund management firm Bybrook Capital and asset management company Premier Miton Investors were among I3 Energy’s large shareholders, who participated in the share placement activity.

Bybrook Capital was allocated up to 54.545 million placing shares, and Premier Miton Investors’ allocation was 54.388 million.

Also Read: I3 Energy: What is transpiring a continuous surge in stock prices?